Preparation Agriculture/Fisheries Council of
April 2007

The Agriculture & Fisheries Council will meet in Luxembourg on Monday 16
(starting at 10 a.m.) and Tuesday 17 April, under the Presidency of Mr Horst
Seehofer, Federal Minister for Food, Agriculture and Consumer Protection of
Germany.

Commissioners Mariann Fischer Boel and Joe Borg will attend the Council
meeting for their respective points. Markos Kyprianou will not be at the Council
meeting.

Monday morning's session will start with fisheries before turning to the
agriculture points which are expected to be concluded by lunch time. Council
will return to the fisheries items in the afternoon.

On Tuesday, the President of the Council invites the Ministers for Fisheries
to an informal discussion and luncheon at which Commissioner Borg will give
information on the state of play with regard to the Green Paper on a future
Maritime Strategy. Commissioner Borg will also open a discussion on Illegal,
Unregulated and Unreported (IUU) fisheries and destructive fishing practices.

A press conference is scheduled at lunch time with Commissioner Fischer Boel
and at the end of the day's proceedings (with Commissioner Borg) on Monday.

The points on the agenda for Monday are:

Fisheries

Recovery of the stock of European eel

The Council will discuss the Commission's proposal for a Council Regulation
establishing measures for the recovery of the highly-depleted European eel
stock, with a view to reaching political agreement. Under this proposal, tabled
in October 2005 by the Commission (IP/05/1233),
in response to the Council's request, the Member States would set up national
plans to ensure the escape of 40% of the quantity of adult eels which would
migrate from rivers on their territories towards marine spawning grounds, in the
absence of the impacts of fishing and other human activities. Member States
would be responsible for devising their own management plan, which would be
subject to review by the Commission's Scientific, Technical and Economic
Committee on Fisheries (STECF) before being approved by the Commission itself.

The current state of the European eel stock requires urgent action, as recent
recruitment levels have been as low as 1% of historic levels. The Commission's
proposal has been the subject of extensive discussion with the Member States
since it was adopted 18 months ago.

These discussions have focused on: measures to promote the use of juvenile
(glass) eel for restocking European river systems, rather than sale abroad; the
introduction, control and enforcement of international trade restrictions;
timing for the adoption of management plans; the reference period to be used
when calculating effort reductions; whether or not to include the Black Sea and
associated river systems within the scope of the Regulation; and the possibility
of aid from the European Fisheries Fund for some measures.

The Commission trusts that all outstanding issues can now be resolved by
Council, so that work can begin on putting appropriate measures in place before
the situation of the stock becomes irrecoverable.

Multi-annual plan for the cod stocks in the Baltic Sea and the fisheries
exploiting those stocks

The Council will debate the Commission's proposal for a Council Regulation
establishing a multi-annual plan for Baltic cod stocks, adopted in July last
year (IP/06/1055).
There are two distinct cod stocks in the Baltic Sea, both of which are
overexploited. Scientists have long advised that the eastern cod fishery is in
danger of collapse, while the western stock is in somewhat better condition.
There is also a chronic problem with underreporting of the real catch level
– by some 35-45% for the eastern stock, according to estimates from the
International Council for the Exploration of the Sea (ICES). These figures were
broadly confirmed by the Commission's inspectors during a series of missions in
2005 and 2006.

The aim of the multi-annual plan is to gradually but surely reduce fishing
mortality on both stocks to levels which can provide stable fishing
possibilities based on the highest sustainable yields in the long term. This
will be achieved through a combination of stepwise reductions in fishing
mortality and a progressive effort limitation scheme which is easy to control
and enforce. Under the plan, Total Allowable Catches (TACs) would be set so as
to reduce fishing mortality from current rates by 10% a year until the target
rate for each stock is reached. At the same time, so as to provide some degree
of stability for the industry, annual variations in TACs would be capped at 15%
year-on-year. An effort limitation scheme would also be set up, based on the
existing summer ban, with the aim of reducing fishing effort by 10% each year
until the target fishing mortality rates has been achieved. Additional control
measures are included in the proposal, which will be crucial to ensuring its
success.

During the debate in Council in October 2006 on Baltic fishing opportunities
for 2007, a compromise was reached by which TACs were reduced by 10% for the
Eastern cod stock, and by 6% for the Western stock, on condition that the
multi-annual plan proposed by the Commission was adopted before the end of June
2007. Should the plan not be adopted, the Commission is automatically authorised
to implement an in-year TAC revision, reducing both TACs to 15% below the level
of 2006.

Council will conduct an exchange of views on the basis of a questionnaire
circulated by the Presidency, looking in particular at effort management and
control provisions, and the specific needs of small artisanal fisheries, as well
as at the overall objectives of the plan. The Commission hopes that this
discussion will pave the way for political agreement on the proposal as soon as
possible.

2006-2008 Action Plan for simplifying and improving the Common Fisheries
Policy

The Commission will make a progress report to Council on its efforts to
simplify and improve the Common Fisheries Policy over the last six months, in
line with the December 2005 Action Plan (IP/05/1551).
This Plan was the first such sectoral action plan to be adopted as part of the
Commission-wide process aimed at encouraging better regulation. With the full
support of stakeholders, the plan identified a series of priority initiatives
concentrated on two key areas – conservation and control.

The Commission has agreed to present a progress review to Council twice a
year, once in the course of each Presidency. Progress during the first six
months of 2007 has been in line with the action plan. In addition to work on the
priorities set down in the plan, a number of new initiatives to simplify the CFP
have also been taken, for example in relation to the European Fisheries Fund,
strengthening dialogue with stakeholders, and State aid.

Launching a debate on a Community approach towards eco-labelling schemes
for fisheries products

In June 2005, the Commission adopted a Communication to the Council and the
European Parliament and the European Economic and Social Committeeto
launch a debate on a Community approach to eco-labelling schemes for fisheries
products (IP/05/808).
The Communication addresses eco-labelling as a means of integrating
environmental protection concerns into the fisheries sector, and outlines three
possible options for using market-based measures to promote sustainable
fisheries.

Since its adoption, the Commission Communication has been the subject of a
broad debate at the European Economic and Social Committee and the European
Parliament, and with stakeholders. On the basis of a questionnaire to be put to
Ministers, the Council will hold an exchange of views on the options discussed
in the Communication, the principles underlying credible eco-labelling schemes
and their role within the overall framework of the Common Fisheries Policy. This
is expected to bring the debate to a conclusion and, should it be warranted, to
prepare the ground for the elaboration of operational proposals in this field of
activity.

Agriculture

Reform of the fruit and vegetables sector

On 24 January 2007, the European Commission proposed wide-ranging reforms to
the Common Market Organisation for fruit and vegetables to bring this sector
into closer line with the rest of the reformed Common Agricultural Policy. The
proposals aim to improve the competitiveness and market orientation of the
F&V sector, reduce income fluctuations resulting from crises, increase
consumption, enhance environmental protection and, where possible, simplify the
rules and reduce the administrative burden. The reform would encourage more
growers to join Producer Organisations; offer POs a wider range of tools for
crisis management; integrate the F&V sector into the Single Payment Scheme;
require a minimum level of spending on environmental measures; higher EU funding
of organic production and promotional measures; and abolish export subsidies for
F&V. Press releases, the reform proposal and impact analysis, an info
pack and further information on the reform are available on the internet at:

The Council will have a policy debate on the Commission proposal on the basis
on a questionnaire from the German Presidency. The two questions put by the
Presidency concern processing aid and crisis management.

Cross-compliance system

On 29 March, the European Commission proposed a raft of measures to improve
and simplify the system of Cross Compliance, which formed a key element of the
2003 reform of the Common Agricultural Policy. The changes aim, among other
things, to improve information, introduce a certain level of tolerance in minor
cases of non-compliance, harmonise control rates and introduce advance notice of
certain on-farm checks. The proposal does not water down the concept of Cross
Compliance, but takes into account experience gained so far to make the system
work better for the benefit of farmers and administrations. It forms the latest
stage in the Commission's ongoing efforts to simplify the CAP.

Cross Compliance means that farmers have to respect a set of standards to
avoid cuts in payments from the European Union. These cover protection of the
environment, public, animal and plant health, animal welfare and the maintenance
of the land in good agricultural and environmental condition. Cross Compliance
has the dual aims of helping to make farming more sustainable and making the CAP
more compatible with the expectations of consumers and taxpayers.